VITAL NEED FOR FRESH MONEY

Dominion, Volume 32, Issue 234, 1 July 1939, Page 11

VITAL NEED FOR FRESH MONEY

Financing N.Z. Imports

ADVICE FOR DEFAULT

AVOIDANCE

Limitation Of Licences

By Telegraph.—Press Assn.—Copy right. LONDON, June 29.

Lord Balfour of Burleigh, presiding at the annual meeting of the National Bank of New Zealand, said that the hopes that exchange control would repair the inroads on the Dominion’s sterling balances had been disappointed, partly owing to the substantial imports for secondary industries and partly owing to the fact that transfers of capital had been permitted to continue on an unexpected scale, which had added materially to the difficulties of those whp required sterling. The Government, he said, should immediately take the responsibility of laying down priorities to ensure that the volume of import licences was kept within the limit of the available sterling. “New Zealand’s credit cannot be maintained if ordinary trading operations cannot be engaged in with confidence.” he commented.

Referring to the task of the New Zealand Finance Minister, Mr. Nash, in Loudon, Lord Balfour said: “Though the moment is not propitious for fresh borrowing, I have no doubt that Mr. Nash’s request for a defence loan will be sympathetically considered. There is also an urgent necessity for fresh money to finance imports if a serious dislocation of trade amounting to commercial default is to be avoided.

“I earnestly hope, whatever the wisdom or folly of the Government’s policy, that; those negotiating with him will ’ remember that sympathy and generosity will do more than rescue the Government from its diiliculties, which are largely of its own making, will save further losses and unemployment in British firms exporting to New Zealand, and will provide the security which the British investor needs.” DEFAULT WITHIN FEW WEEKS Reported Danger For New Zealand LONDON BALANCES NOW VERY LOW LONDON, June 29. The city editor of the “Daily Mail” understands that New Zealand’s Loudon balances are now so low that there is grave danger of commercial default within three weeks unless something is done to prevent it. “New Zealand importers,” he says, “having to meet jiayments for goods from Britain which have already arrived in New Zealand, will be forced to pay in New Zealand pounds. This is a serious matter for exporters from Britain, and will mean a further fall in the New Zealand currency. “Mr. Nash would be severely handicapped in his task of converting the debt by such a blow to New Zealand credit. It should not be impossiole to evolve '.a method whereby regular flnancing\of imports can be continued pending ail adjustment of trade.” NO BANK COMMENT When the statement from the “Daily Mail” was submitted to the chairman of the Associated Banks, Mr. R. C. Addison, for any. comment he might make upon it, he said he did not wish to do so at present. He remarked that the trading banks fully appreciated the various difficulties of the present situation, but be had nothing further to say than that. There was also no comment in official quarters when the cablegram was submitted to them, MR. NASH’S ITINERARY LONDON, June 29. The New Zetland Minister of Finance, Mr. Nash, visited Kidderminster, Birmingham, and conferred with manufacturers.

He saw the Dominions Secretary, Sir Thomas Inskip, today. His Majesty will receive him this evening, after which he will be a guest at an international affairs dinner, He will visit pottery establishments at Stafford tomorrow, and thence will go to Dublin.